NSDC Submission

Issue / Pacific Aid for Trade Strategy (AFT)
Responsible Agency / Ministry of Foreign Affairs and Immigration – Trade Division – Mr Danny Williams
Action Required / Confirmation of list of projects for inclusion in the Pacific Aid for Trade Matrix
Background / The Pacific Islands Forum Secretariat (PIFS) through contracted consultants visited the Cook Islands early in 2013 to help Pacific ACP States (PACPS)to develop a matrix of priority activities based on their national and regional priorities and to develop project proposals with cost outlines of these projects and programmes that can be used to secure additional AfT resources.
The PIFS conducted field visits on Rarotonga with relevant government departments and agencies responsible for trade, finance, taxation/customs planning, fisheries, agriculture, maritime, labour, as well as other stakeholders in the private sector, such as the Chamber of Commerce, Business Trade Investment Board, and Non State Actors to obtain a cross-section of views in the national assessments. They worked with the MFAI in developing the Cook IslandsAfT matrix taking into consideration current trade negotiations.
The matrices are made up of national project fiches which are designed to be used by the PACPS to seek funding from donor and development partners such as under EDF 11, as well as other relevant programmes for the respective interventions. It has been crafted to cater to the broad requirements of donors in terms of the project proposal template and in particular the EU’s requirements.
Based on the feedback from PACPS,the fiches also addresses the key issues that donors expect in project fiches in order to carry out assessments for funding.
There is no specific separate funding available at the regional level at this stage to fund the national level projects. However, once the national fiches are finalizedthe PIFS are encouraging PACPS to utilise the project fiches to try and secure bilateral funding from development partners.
The PIFS have proposed the development of a Pacific Regional Trade Development Facility(PRTDF)which is not yet in operation as a few more countries are needed (approximately three) to sign onto the MOU before the Facility can be made operational (at least 10 PACPS need to sign up). Once the PRTDF is operational, efforts will be made to secure Aid for Trade resources and PACPS can access funding for trade-related projects from the Facility. (See separate submission o the PRTDF).
Purpose of Strategy /
  • The ultimate goal of the Strategy is to set a coherent approach to resource mobilisation.
  • The matrix takes into account the implementation needs arising from the obligations contained in trade agreements that Pacific ACP States (PACPS) are negotiating and/or are parties to as well as the assistance that will be required by the countries to enable them to fully exploit the opportunities offered by these agreements.

Related Issues / Pacific Island Countries (PICs) face a number of distinct systemic challenges which affect their ability to capitalize on potential gains from trade and they need to look beyond a narrow focus on trade liberalization and implement wide-ranging initiatives to enable them to reverse these initiatives.
It is envisaged that the AFT will allow PICs to meet their trade potential, tap into new exports and markets as well as coherently address their capacity constraints. More specifically, it should help PICs improve their trade-related infrastructure, increase their supply-side capacity, undertake appropriate trade and regulatory reforms and adopt the necessary adjustment measures to be able to effectively address its distinct economic challenges and benefit from international trade opportunities.
Currently, there is no funding under the proposed PRTDF, however, the PACPs in their negotiations with the EU for an Economic Partnership Agreement have recognized their capacity gaps and have requested the EU to consider including a PRTDF whereby, the Aid for Trade matrix will consolidate all the requests from PACP members for capacity support to enable them to meet their trade potential.
The PACP members are strongly encouraging the EU to put their regional EDF funds into this Facility. The EU in return have asked queried Australia and New Zealand’s role with respect to also contributing to this Facility given that any benefits the PACPs will accrue through the EPA will also benefit Australia and NZ. The logistics of where and how the funding will be managed has yet to be finalized, but it is anticipated that this will be raised at the negotiations to be held in Brussels next week.
The trade agreements being referred to include the Economic Partnership Agreement (EPA), the Pacific Island Countries Trade Agreement (PICTA), the Protocol on PICTA Trade in Services, the Melanesian Spearhead Group (MSG) Trade Agreement and the Micronesian Trade Committee (MTC) Trade Arrangement.
Each trading agreement will have its individual implementation matrix highlighting the implementation needs stemming from the obligations that are contained in respective agreements and identify those needs that can best be addressed at the national, sub-regional and regional level. All these individual matrices combined together will make up the consolidated AfT matrix.
Follow up required / The PIFS have submitted to MFAI the Cook Islands confirmed list of 7 project fiches to be funded under the AFT. Deadline for confirmation of list is end of September 2013 to enable countries to include their lists into the EPA negotiations with the EU to take place in October 2013.
Although there is no funding, the PIFS are proposing thatthey will finalise them by ensuring that they conform to the templates and then they will be sent back to MFAI. The Cook Islands can then decide on the priority levels for each of the fiches in terms of seeking funding.
Recommendations / The NSDC to consider the attached 7 fiches and depending on the priority accorded to them, propose them for funding from alternate sources:
  1. Tourism promotion enhanced and audio-visual skills developed in the CKI, by means of a combined movie-making and marketing initiative;
  2. Strengthening capacity of SPS control in the CKI – Phase 1 (Upgrading of the CKI Microbiology Laboratory);
  3. Strengthening capacity of SPS control in the CKI – Phase 2 (accreditation of Competent Laboratory);
  4. Development of traditional handicraft activities and improving the profile of women handicraft producers in the CKI;
  5. Reinforcement of legal and operational capabilities on Customs management in the CKI;
  6. Improving capacity and capability to produce quality fish products for national and international markets;
  7. Improve capacity to build business and enterprise to contribute to sustainable national economic growth